The PIAF Chairman Irfan Iqbal Sheikh in a statement on Tuesday said the Securities and Exchange Commission of Pakistan (SECP) and Board of Investment (BoI) have introduced several reforms regarding ease of starting a business, which are right steps in the right direction. The time to register a company has also been reduced to four hours in one-go where requirements are now only submission of name availability with three options and incorporation application with model memorandum of association and articles of association.
The SECP has further reduced fee involved in company registration due to merger of several statutory forms into a single form. The current name reservation and company registration fee for single member company with a paid-up capital up to Rs 100,000 is Rs 1,550 under online mode and Rs 3,000 under offline mode. Previously it was Rs 2,300 under online mode and Rs 4,500 under offline mode. Both reforms have their legal backup to insure the protection that an incumbent business requires, he added.
Considering the world's best practices for company registration, the single online procedure has been sought through reforms. The SECP in this regard has combined procedure for company name reservation and company incorporation. This helps the new start-ups register companies in a single step through e-services rendered by SECP. The much needed legal back-up was already in place and now implemented through SRO 704 (I)/2017, he maintained.
It is to be noted that the World Bank 'Doing Business 2018' report has also noted that Pakistan implemented some business reforms in 2017, making it easier to register a new business, transfer commercial property and facilitate cross-border trade.
The Lahore Chamber of Commerce & Industry also welcomed the reforms introduced by the Punjab for ease of doing business and said that Chief Minister Punjab Shahbaz Sharif deserves appreciation for taking another giant leap towards economic self-reliance by supporting the business sectors.
In a letter written to Chief Minister Punjab Shahbaz Sharif, the LCCI President Malik Tahir Javaid said that construction permits, property registration and business registration related reforms would not only give breathing space to the industrial sector but would also improve Pakistan's international ranking in ease of doing business.
The LCCI President said that reforms for the Punjab industry would certainly play a pivotal in much-needed boost in exports. He was of the view that federal government should also follow the path of Punjab government and introduce such reforms as cost of doing business is one of the major hurdles hampering the growth of all sectors of economy.